flatexDEGIRO H1/2025 presentation: Record results prompt raised guidance

Online broker flatexDEGIRO AG (XETRA:FTK) presented its preliminary results for the first half of 2025 on July 23, revealing record financial performance that has prompted management to significantly raise its full-year guidance. The company’s stock closed at €26.36 on July 22, near its 52-week high of €27.50, reflecting investor confidence ahead of the results announcement.

Executive Summary

flatexDEGIRO reported exceptional growth across key metrics for H1/2025, with revenues reaching €278 million, EBITDA of €132 million, and net income of €82 million. This strong performance was driven by increased market volatility, continued customer growth, and disciplined cost management. Based on these results, the company has substantially raised its full-year guidance, now expecting net income to grow 15-25% year-over-year to €128-139 million, compared to its previous guidance of -5% to +10%.

As shown in the following chart of the company’s record half-year results:

"Q1 was our best quarter to date in terms of revenue and earnings," CEO Oliver Behrens had stated during the Q1 earnings call, and the momentum clearly continued into Q2, resulting in the strongest half-year performance in the company’s history.

Quarterly Performance Highlights

The company’s commercial performance showed strong year-over-year growth across key metrics. Assets under custody reached €83.5 billion as of June 2025, representing a 37% increase year-over-year and a 10% increase quarter-over-quarter. Settled transactions for Q2/2025 totaled 17.9 million, up 18% year-over-year but down 8% quarter-over-quarter, reflecting some normalization in trading activity from the exceptionally high Q1 levels.

The following chart illustrates these key commercial performance indicators:

Net cash inflows remained robust at €2.5 billion in Q2/2025, representing a 74% increase year-over-year. The company noted that April 2025 saw the second-highest monthly cash inflows ever, with existing customers contributing approximately 80% of these inflows. Interestingly, only 85% of net cash inflows were reinvested in H1/2025, compared to a historical average of 95%, suggesting clients are maintaining higher cash positions.

The strength of these cash inflows is demonstrated in this chart:

Detailed Financial Analysis

flatexDEGIRO’s revenue for Q2/2025 reached €132 million, with commission income of €85 million and interest income of €43 million. The company has successfully increased its monetization, with commissions per transaction rising to €4.72 in Q2/2025, up from €4.33 in Q2/2024.

Profitability metrics showed significant improvement, with Q2/2025 EBITDA of €63 million and net income of €40 million. For the first half of 2025, EBITDA totaled €132 million and net income reached €82 million, representing increases of 38% and 58% respectively compared to H1/2024.

The following chart shows the quarterly progression of EBITDA and net income:

A key driver of improved profitability has been the company’s focus on operational efficiency. The Cost-Income Ratio for H1/2025 was 45%, down from 48% in H1/2024 and 70% in H1/2023. This improvement reflects both revenue growth and cost discipline, with net revenues increasing by €80 million from H1/2023 to H1/2025, while operating expenses declined by €4 million over the same period. The company also reduced its headcount by approximately 40 full-time employees from December 2024 to June 2025.

The dramatic improvement in cost efficiency is illustrated in this chart:

Strategic Initiatives

flatexDEGIRO successfully launched crypto trading in Germany in Q2/2025, generating a trading volume of approximately €175 million in the first half of the year. The international rollout has been delayed due to the company’s custody partner waiting for MICAR licensing, with the launch and marketing campaign now expected to begin after the summer holidays.

The company is also on track to launch securities lending in key markets, including the Netherlands and Spain, in early Q4/2025. These strategic initiatives are expected to contribute to revenue growth in the coming quarters.

As shown in the presentation, these strategic initiatives form a key part of the company’s growth strategy:

Forward-Looking Statements

Based on the strong H1/2025 performance, flatexDEGIRO has significantly raised its full-year guidance. The company now expects:

• Revenues to grow 4% to 8% year-over-year to approximately €499-518 million (previously -5% to +5%)
• Net income to increase 15% to 25% year-over-year to approximately €128-139 million (previously -5% to +10%)

The guidance upgrade is based on several factors, including stronger-than-expected customer growth and trading activity in January-April 2025, higher cash positions per customer, and continued cost discipline. However, the company does expect some normalization in trading activity for the remainder of the year and is factoring in one additional ECB rate cut. The company has also reduced its margin loan rates by approximately 50 basis points as of July 1, 2025.

The updated guidance and its key drivers are presented in this chart:

While maintaining a cautious outlook for the rest of 2025, flatexDEGIRO’s management appears confident in the company’s ability to continue its growth trajectory through a combination of customer acquisition, product expansion, and operational efficiency. The company’s strong H1/2025 performance and raised guidance suggest it is well-positioned to capitalize on market opportunities despite potential headwinds from interest rate cuts and market normalization.

Full presentation:

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